New Delhi, July 08, 2018: With increased competition for flagship space and the heightened perception of marketing value for such sites, retail brands are spending more on fitouts to maximise their unique presence and the consumer experience in flagship stores.
If you ever needed reassurance of the relevance of bricks and mortar, look no further than CBD flagships. Despite the emergence of e-commerce and the sheer number of online retailers who have hit Australian shores, many retailers remain convinced of the value that the retail experience provides.
According to reports published in www.smh.com.au So much so that they are committing millions of dollars to fitting out retail space to embody the aspirational context of their brand.
In the age of intermodal retail, David Jones is complementing its digital strategy with a significant investment in bricks and mortar assets.
Having committed $200 million to its customer experience at its Elizabeth Street flagship in Sydney, David Jones is proof the pressure is on for retailers to use their flagship space as a platform for brand values and tangible customer experience.
According to reports published by Michael Tuck Other brands capitalising on flagship spaces include the Daily Edited, which turned its Sydney flagship space into an ‘aesthetic dream’ apartment; the true embodiment of the brand.
Outside of the mall, the trend is evident in other flagship hotspots. Luxury retailer Louis Vuitton reportedly invested $11million into its new George Street flagship fitout.
While expensive fitouts are not unusual for premium brands, the residual effect is a rise in rents on the surrounding sites of 10 per cent, compounded by the incoming light rail.
Another factor putting pressure on Australian retailers to up their instore offering is the influx of international retailers entering the local market.
In the first half of this year, Colliers International has worked closely with an array of international retailers seeking flagship sites in Sydney. The firm recently represented LukFook Jewellery from Hong Kong at Westfield Sydney, secured ‘Barry’s Boot Camp’ gym from the US at 52 Martin Place and helped Employees Only Bar, a top-rated international bar group originally from New York City, discover Barrack Street.
The investment in flagships across prime retail sites in Sydney is likely to create a domino effect, with other retailers looking to revitalise their instore experience.
Forced to innovate their bricks and mortar concepts to compete with the convenience of online shopping, brands will continue to invest in a flagship to engage with consumers by creating a space that is the embodiment of their brand identity.